Old sub-prime spread by the huge impact bank.

<P> Last week, a number of data showed the U.S. economy into a growing risk of recession. .Some analysts predicted that the real economy is not only a new wave of financial crisis, I am afraid Qiangzai old Bank of the United States, such as Citigroup, Societe Generale and Swiss Bank, the second by mentioning the amount of losses up to 700 billion U.S. dollars. .</ P> <P> It http://finance. Hearing, according to Taiwan's "China Times" reported to the bank from the subprime mortgage companies, subprime mortgage crisis has been fired and the third wave of bond issues for the insurance companies who do .. .Practice of credit default insurance, bond insurance companies to their highest AAA credit rating, "borrowing" to issuers who make these bonds have the highest credit rating. .</ P> <P> rating the higher the lower the cost of borrowing money, loan amount can be relatively high, to expand the market, and debt guarantor insurance companies have to make money. .But this debt to the underwriting insurance business by subprime mortgage crisis hit many structured financial products, capital quickly dried up, face the fate of credit rating downgrade, related to their risk of insured bonds have been downgraded. .Among these, including a large number of American state government bonds, for example: New York 220 billion state debt. .Once the credit default insurance (credit default swap) the company trouble, the situation is hard to imagine. .Because the extent of the credit default insurance market reached 45.5 trillion U.S. dollars last year, twice the U.S. stock market. .</ P> <P> currently the top three U.S. bond insurance company, the order of MBIA, AMBAC and FGIC. .MBIA has the largest of the 2.5 billion capital increase has been completed, but the crisis is not lifted. .Moody's said the end of March because it will be completed before the top two in the ratings, Standard & Poor's added that the two will be before the downgrade. .Once the two ratings are downgraded, the two companies may have to embark on the fate of the youngest. .</ P> <P> FGIC Moody's downgrade was on the 14th, making the New York Public Library has been severely affected immediately. .Throughout the weekend, the New York Insurance Supervision Officer with the company the whole weekend was busy handling the crisis, not only made the company split into two new companies set up a good transfer of assets, bad assets in the old company's program. .Warren Buffett invited to the weekend, the foreign sovereign funds and other possible source of financing, hopes to persuade potential capital increase to invest in new companies, new company to maintain credit rating AAA, New York State debt is no problem. .Currently, Buffett, none of the decision of foreign sovereign funds. .</ P> <P> including the Wall Street Journal, Reuters and other media are considered, before the wave of the new prescription will hurt the big banks will no longer be a heavy blow. .Because of bad subprime mortgage-related bonds have left in the original company, the original company bad credit rating, the bond is bound to be demoted. .The hands of the banks holding these bonds, you have to provide for bad debts soared. .</ P> <P> Reuters report that quoted the end of January, the bank raised 70 billion U.S. dollars if the increase, which banks will be the biggest victims of it? .Reuters estimates that should be now the most enthusiastic debt insurance companies want to rescue banks, including Credit Agricole, Barclays Bank, Citibank, Societe Generale and UBS. .</ P>.